The impact of changes in real interest rates on saving and growth is a central issue in development economics. According to one familiar view, a financial liberalization program which increases real interest rates should encourage saving, thereby boosting investment and growth. While such...

In years to come, the "community mechanism" will become increasingly important. This is a mechanism in which at least one person voluntarily offers cooperation and is not rejected. The community mechanism complements the workings of the market mechanism (a mechanism based on price and...